diff --git a/src/apps/installer/InstallerCopyLoopControl.cpp b/src/apps/installer/InstallerCopyLoopControl.cpp
index 3a143a3f79..4221366c51 100644
--- a/src/apps/installer/InstallerCopyLoopControl.cpp
+++ b/src/apps/installer/InstallerCopyLoopControl.cpp
@@ -57,7 +57,10 @@ InstallerCopyLoopControl::OverwriteOnConflict(const BEntry *srcEntry,
 			const char *destName, const BDirectory *destDir, bool srcIsDir, 
 			bool dstIsDir)
 {
-	return kReplace;
+	if (srcIsDir && dstIsDir)
+		return kMerge;
+	else
+		return kReplace;
 }